The following income statement and balance sheets for Virtual Gaming Systems are provided. VIRTUAL GAMING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $3,056,000 1,954,000 1,102,000 $862,000 29,000 8,400 17,000 52,000 968,400 $ 133,600 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investment in bonds Land Equipment $190,000 85,000 $148,000 109,000 64,000 139,000 12,400 6,480 109,000 214,000 244,000 274,000 214,000 Less: Accumulated depreciation (75,000) (46,000) Total assets $918,400 $769,480 Liabilities and Stockholders' Equity